DISTRIBUTION OF MILK 



121 



vested and volume of sales, were larger in the case of some 

 cities than of others; but audits of the accounts of some 

 of the representative milk marketing organizations in dif- 

 ferent cities show that there is not even a general correla- 

 tion between net profits and the margins of gross profit 

 on retail sales. Even if per unit costs of plant operation 

 and delivery service were approximately the same, the 

 net profits of any particular business enterprise would be 

 dependent to a large extent upon the proportionate volume 

 of sales at the prevailing market prices to different classes 

 of wholesale and retail trade." 1 



The following table from the Bureau of Markets gives 

 dealers* spreads or margins in twelve of the largest cities 

 of the United States for the nine months' period ending 

 March, 1919. 2 



TABLE XXI 



Dealers' Margins (Spread Between Price Paid and Selling Price) on Quart Sales 

 of Standard Grade Milk Delivered to Different Classes of Trade 



1 Hoard's Dairyman, Jan. 16, 1920, quoting U. S. Bureau of Markets. 2 Ibid. 



